How to Use CPF for HDB Down Payment: Homejourney Guide
You can use your CPF Ordinary Account (OA) savings, combined with CPF housing grants like the Enhanced CPF Housing Grant (EHG), to pay most or all of your HDB down payment, depending on whether you choose an HDB loan or bank loan.[1][2][4]
Homejourney prioritizes your safety and trust by verifying all financing info, helping first-time buyers navigate CPF usage confidently. This cluster focuses on CPF for down payments, linking back to our pillar Maximize HDB Grants & Financing: Homejourney Ultimate Guide ">Maximize HDB Grants & Financing Guide for full coverage.
HDB Down Payment Basics: 25% Rule Explained
HDB requires a 25% down payment on both Build-To-Order (BTO) and resale flats, whether using HDB loan or bank loan.[1]
For HDB loans, the full 25% can come from CPF OA savings + grants (no mandatory cash).[2] For bank loans, pay at least 5% in cash, with the remaining 20% from CPF OA + grants.[1][2]
Grants like EHG (up to $120,000 for families, $60,000 for singles) are credited to your CPF OA to offset the purchase price or down payment.[1][2] They reduce what you pay upfront but must be returned with 2.5% interest upon resale.[2]
At Homejourney, calculate your exact needs using our mortgage eligibility calculator for transparent planning.
Step-by-Step: How to Use CPF for HDB Down Payment
Follow these actionable steps to deploy your CPF effectively for your HDB flat.
- Obtain HDB Flat Eligibility (HFE) Letter: Apply via HDB portal with Singpass. It shows your loan eligibility, grants, and down payment breakdown.[1]
- Check CPF OA Balance: Log into CPF portal. Ensure sufficient OA savings after grants for the down payment portion.[4]
- Apply for CPF Housing Grants: Submit via HDB My Flat Dashboard post-HFE. EHG, PHG, or others credit to CPF OA automatically.[1][2]
- Confirm Financing Plan: For HDB loan, use My Flat Dashboard to deduct down payment from CPF. For bank loans, your lawyer coordinates.[1]
- Pay Staggered if Eligible: Young buyers (one under 30) pay 2.5% first, rest later.[1][6]
- Track Deductions: CPF auto-deducts at key stages: signing Agreement for Lease and key collection.[1][5]
Avoid pitfalls like insufficient CPF by building savings early. Homejourney's bank-rates page lets you compare HDB vs bank options instantly.
Documentation Checklist for CPF Usage
- HFE Letter (from HDB portal)
- CPF Statement (last 12 months, via CPF app)
- Income docs for grants (payslips, IR8A)
- Singpass for all portals
- Grant approval letter (auto-credits to CPF)
Prepare digitally via Singpass for speed. See our HDB Loan Documents Checklist 2026 | Homejourney Guide ">HDB Loan Documents Checklist for more.
HDB Loan vs Bank Loan: CPF Grant Impact
Choose wisely based on cash on hand.
| Financing | Down Payment Structure | CPF + Grants Usage |
|---|---|---|
| HDB Loan | 25% total (staggered: 5% + 20% or 10% + 15%) | Full 25% OK, no cash minimum[1][2] |
| Bank Loan | 25% total (staggered: 10% + 15% or 20% + 5%) | 20% max; 5% cash mandatory[1][2] |
Example: $500,000 resale flat. Down payment $125,000. With $105,000 EHG:[2]
- HDB Loan: Grants + $20,000 CPF covers all. No cash needed.
- Bank Loan: $25,000 cash + $100,000 CPF/grants. Short on cash? Go HDB.
Compare rates from DBS, OCBC, UOB, HSBC via Homejourney bank-rates.
Special Schemes: Maximize CPF with Grants & Staggered Payments
EHG & PHG: EHG for lower incomes (up to $120k families), PHG for mid-income. Combine for grant loan combination to minimize cash.[1][2]
Staggered Downpayment: First 2.5%-10%, rest at key collection. Ideal for young couples/NSFs deferring income assessment.[1][6]
Singles: $60k EHG max, but check resale premiums.[3] Insider tip: Apply for grants pre-ballot to lock in eligibility.
Link to HDB Loan vs Bank Loan 2026: Which Financing Option Saves You More? ">HDB vs Bank Loan Comparison for details.
Pro Tips to Maximize HDB Grants with CPF
- Build CPF OA early: Contribute voluntarily if possible.
- Time grant applications: Post-HFE, pre-financing confirmation.
- Avoid over-borrowing: Use Homejourney calculator to stay under TDSR.
- For resale, use HDB calculator (needs HFE).[1]
- Refinance later? Track via Homejourney.
Disclaimer: Rules per HDB/CPF as of 2026. Consult HDB or advisor; Homejourney provides info, not advice.
FAQ: How to Use CPF for HDB Down Payment
Can I use 100% CPF for HDB down payment?
Yes, with HDB loan if CPF + grants suffice. Bank loans require 5% cash.[1][2]
How much EHG can I get for CPF down payment?
Up to $120,000 families, $60,000 singles, credited to CPF OA.[1][2]
When is CPF deducted for down payment?
Staggered: First at Agreement for Lease, rest at keys.[1][5]
Can grants cover bank loan cash portion?
No, grants only for CPF-eligible 20%.[2]
Young couple down payment with CPF?
2.5% first via staggered scheme.[1]
Ready to buy? Use Homejourney's multi-bank application – one Singpass submit to DBS, OCBC, UOB & more. Search flats at property search. Trust Homejourney for safe, verified journeys. Back to Maximize HDB Grants & Financing: Homejourney Ultimate Guide ">pillar guide.
